Payroll
Costs before customer receipts
If you need to cover a temporary payroll timing gap, explain the payroll date, invoicing cycle and expected customer payments.
What kind of timing gap are you funding?
Seasonality
Stock before peak sales
Show historic seasonal performance, purchase orders and the planned sales window.
Suppliers
Deposits or early-payment terms
Connect supplier payments to confirmed orders, margin and expected collection dates.
Contract
Mobilisation costs
Set out wages, materials or subcontractor costs before the first contract payment.
Tax
A defined business liability
Provide the type of liability, amount, deadline and affordability after the payment date.
Unexpected cost
Short-term disruption
Explain the event, its commercial impact and how normal cash flow is expected to recover.
Compare the starting routes
| Route | May fit when | Check carefully |
|---|---|---|
| Term business loan | A defined amount is needed and repaid on an agreed schedule | Total repayable, payment frequency, term and early-settlement terms |
| Revolving business credit | The business expects repeated drawings and repayments within a limit | Availability, facility fees, variable cost, reviews and withdrawal rights |
| Invoice finance | The gap is driven by eligible unpaid B2B invoices | Customer eligibility, concentration, disputes, recourse and ongoing fees |
| Asset finance | The money is mainly for an identifiable vehicle, machine or equipment item | Deposit, asset eligibility, agreement term and ownership position |
Explore invoice finance Explore asset finance Compare all finance options
A quick commercial sense-check
Test the repayment story before applying
| Question | A stronger explanation shows |
|---|---|
| What exactly creates the gap? | A dated contract, supplier commitment, payroll cycle, tax bill or seasonal pattern |
| What repays the borrowing? | Identifiable customer receipts, trading cash flow or another credible source |
| What if income is late? | A sensible contingency rather than dependence on one uncertain event |
| Does the term match the need? | The debt is not likely to remain after the funded benefit has ended |
If borrowing only postpones a continuing loss or repeated shortfall, more debt may not solve the underlying issue. Consider appropriate accounting, restructuring or insolvency advice where relevant.
Prepare a useful working-capital enquiry
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Describe the cycle
Set out when cash leaves, when cash returns and what evidence supports both dates.
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Size the requirement
Use a short cash-flow forecast to identify the peak gap and a realistic buffer.
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Compare structures
Assess the proposed payment schedule against other routes and the downside if income is delayed.
Five quick answers
Working-capital loan questions
01 · Is working capital finance only for struggling businesses?
No. A profitable business can still face a timing gap caused by seasonality, growth, supplier terms or a new contract. The provider will assess the actual circumstances.
02 · Can it be used for tax?
Yes, eligible VAT, corporation-tax and other business tax liabilities can be funded through specialist short-term loans. Provide the HMRC bill, amount, deadline, recent bank statements and a credible plan for meeting both the loan payments and future tax liabilities.
03 · What information may be requested?
Recent bank statements, accounts or management figures, existing commitments, a cash-flow forecast and evidence of the purpose may be requested.
04 · Is a loan better than an overdraft or invoice finance?
Not universally. A loan gives an agreed repayment schedule, revolving credit may support repeated needs, and invoice finance may fit eligible unpaid B2B invoices. Compare the actual terms and operational fit.
05 · How much should the business request?
Base the request on an evidenced peak cash need, not the largest amount available. Include a realistic contingency and test whether repayments remain affordable if receipts are late.
When orders or assets drive the cash-flow gap
Review the source and timing of the gap before assuming a general loan is the appropriate route.
Trade finance
Review the gap between paying suppliers and receiving customer receipts, including import and confirmed-order needs.
Asset-based lending
Review several eligible asset pools when invoices alone do not explain the whole requirement.
Invoice finance
Review completed B2B sales awaiting payment.
Managing haulage fuel and payment timing?
Review fuel costs, rates and customer receipts before assessing a working-capital gap. Read the haulage fuel costs and cash-flow guide.
Size the peak cash gap, then test the repayment
Prepare a weekly cash-flow forecast covering the immediate need; 13 weeks can be a useful planning window, rather than a lender rule. Put wages, suppliers, tax and existing finance payments beside realistic customer receipt dates. Find the largest shortfall and explain any contingency.
A one-off stock purchase has a different repayment pattern from a recurring payroll gap. If the shortfall repeats every month, review whether a revolving facility or funding against eligible B2B invoices fits better than repeatedly taking a term loan. Additional debt needs an affordable repayment source.
For a substantial requirement, explain the cash conversion cycle, customer concentration and existing facilities. See large business loans for £250,000 into the millions, or contract mobilisation where delivery costs arise before a signed contract pays.
Tell us what creates the working-capital gap
Share the amount, purpose, timing and expected source of repayment.